Gazprom: Ukraine may lose gas discount

Russia has warned Ukraine that it could lose its gas price discount due to Kiev's outstanding gas debt. The Russian state gas company Gazprom estimates Ukraine's debt at $ 1,550 million for gas supplies in 2013 and still this year.

Sergei Kupriyanov, a spokesman for Gazprom, said: “It seems that in the absence of payments for gas and non-fulfillment of its obligations, Ukraine may not maintain its current discount on gas. The gas discount agreement includes full and timely payment. "

A spokesman for the Russian Energy Ministry said that Moscow sees no reason to extend the discount for Ukraine in the second quarter, due to outstanding debt. "Does it make sense to continue with the existing reduced price gas supply agreement? The reduced price gas offer is confirmed quarterly. It would be foolish and wrong to extend it into the second quarter."

Yuriy Prodan, Ukraine's newly appointed energy minister, said the price of Russian gas will remain unchanged in March, but it could return to $ 400 per 1,000 cubic meters in the second quarter if the parties do not sign an agreement.

In December, Russia agreed to cut gas prices for Kiev by about a third, to $ 268.50 per 1,000 cubic meters from $ 400 that Ukraine has been paying since 2009, after ousted President Viktor Yanukovych turned down a trade deal with the EU in favor of more close ties with Moscow. The deal allows quarterly price revisions from the 5th to the 10th day of the first month every quarter.